Are you investing in mutual funds recently? Do you have a lump sum to enter into equity as the market is down? Are you daily tracking the NAV and market to enter?
NAV Syndrome – What is this?
There are few SPECIAL investors who by hook or crook wish they get the NAV of a particular day. They wish to time the market exactly like Olympic shooter targetting.
They forget that if the market starts to go up after your purchased order, then you end up in buying at higher NAV than yesterday.
Few did this mistake by placing the order when they saw market is downtrend around 10%. But due to high volatility in the market, that day ended positively.
In such a situation, those who placed the buying order feeling as if they lost everything 🙂
Sometimes, if there are certain glitches at AMC end or the platforms they are using to investing, their frustration double. Because the market is down and they are rightly targeting the price by investing in lower NAV. But they feel unlucky that they are unable to invest just because there is a technical glitch.
Such investing in mutual funds by tracking NAV day and night is nothing but a NAV Syndrome.
Is this NAV Syndrome good or bad?
First thing you have to define yourself why you are investing and especially why you are entering into equity. If your goal is long term and did the proper asset allocation, then how today’s PERFECT NAV striking helpful for you?
Who knows on this earth that from the day you invest, the NAV will never go down again?
Timing the market with exact NAV on the exact day is foolish to act. Down the line, after 5 years or 10 years, you look back then you realize this that how foolish you are by addicted to this NAV syndrome and whether this CIRCUS benefited or not.
The problem of NAV Syndrome is not you. But the technology you have adopted to invest. You can watch the market level LIVE and within few seconds you can buy and sell the mutual funds online or with an app. Such facilities rather than creating peace of mind or convenience, they started to create such mental disorders among mutual fund investors.
COME ON…SHOW MATURITY…COME OUT FROM THIS NAV SYNDROME…CONTROL YOUR BEHAVIOR….BY FOLLOWING THIS NAV SYNDROME, YOU CAN’T CONTROL THE MARKET. MARKET WILL NOT GO UP TOMORROW JUST BECAUSE YOU INVESTED TODAY….BE MATURE 🙂